Edward Yau: The Hong Kong government will monitor oil price changes and has requested to ensure energy supply stability.

The situation in the Middle East is unstable, leading to fluctuations in international oil prices. On March 17, the Chief Executive of the Hong Kong Special Administrative Region, John Lee Ka-chiu, stated that the Hong Kong government is currently mainly focused on ensuring stable energy supply, enhancing the transparency of oil price changes, monitoring price changes, and will carefully consider their necessity and reasonableness, as well as remind suppliers of their social responsibility. He pointed out that the government has been in contact with various suppliers, including power companies, airlines, fuel or gasoline companies, to ensure they have sufficient supply and inventory, and required these suppliers to make contingency plans for different situations, including adjusting the mix of crude oil production, using natural gas, coal, and nuclear energy, and providing real-time information on price changes to increase transparency. Regarding supply and price changes, John Lee Ka-chiu stated that the government will enhance market and price transparency, including the Competition Commission under the Hong Kong commerce and economic development bureau closely monitoring market operations, and will exercise its power in accordance with the law in cases of unfair competition or price collusion. In addition, the Hong Kong Environmental Protection Department has met with vehicle fuel suppliers this week, requiring them to provide more market information; the Hong Kong Transport and Logistics Department has contacted local airlines, emphasizing that any fare adjustments must be reasonable and transparent. John Lee Ka-chiu also pointed out that the situation in the Middle East has brought short-term impact and fluctuations to Hong Kong, but also opportunities. On one hand, rising fuel and natural gas prices, pressure on aviation, resulting in fare increases due to fuel and other factors; on the other hand, the financial market is impacted in the short term, but will see continuous inflow of funds in the medium to long term, which will benefit the development of Hong Kong as a financial center, family offices, and also have a driving effect on the offshore RMB market. He summarized that overall challenges are faced, but "in the medium to long term, opportunities will outweigh challenges." As for whether cooperation and development with the Middle East will be temporarily suspended, John Lee Ka-chiu said that Hong Kong has established good cooperation relations with countries in the Middle East, and different projects are being implemented. Cooperation, especially government-to-government cooperation, will not be affected or slowed down due to the situation, and if Middle Eastern investors' funds need an "exit strategy," Hong Kong will actively engage with them. However, he also mentioned the need to continue to expand new networks, particularly with countries along the Belt and Road Initiative, while still focusing on traditional markets.